Frauds' impact reverberates

SaskTel CEO Ron Styles doesn’t think two recent cases of collusion have besmirched the name of the Crown corporation.

Both of the cases resulted in criminal charges, one in prison terms for three highlevel SaskTel managers. While the cases inarguably caught the public’s attention, Styles said SaskTel employees are, on the whole, people who hold themselves to a high level of ethical standards.

“Unfortunately, if you’re going to get 500 people in a room, there’s going to be somebody in the 500 that will look to try and take advantage of their job and the situation,” he said.

“It’s a reality, but it’s not one we like, and one we try to do everything to try and prevent.”

The issue of the fraud and collusion at SaskTel was brought up by NDP MLA Warren McCall at Tuesday’s Standing Committee on Crown and Central Agencies.

Styles Ron Styles told the committee he is pleased the collusion was uncovered, and both cases have brought about changes in the way SaskTel does things.

Take the SaskTel International case, in which senior management was found to have deliberately misled the provincial auditor with inaccurate financial statements. Although SaskTel has never quite worked out why the managers reported incorrect figures – there was no financial incentive to do so – it resulted in a “more aggressive” set of reporting requirements at the SaskTel subsidiary, he said.

Take management expenses, which Styles said are now reported to the board on a quarterly basis “so the board can look at, question and confirm the legitimacy of the expenses.”

There is also stricter oversight, the corporation’s chief financial officer meets with the board more frequently and there are more mandatory reports in a bid to enhance scrutiny.

“We’re always re-examining things,” he said after the meeting.

“The minute you stop and say you’re just going to stay with what you’ve got, you’re going to get yourself into trouble.”

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